ICO PASS

Maret 22, 2018

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ICO has got a lot of investor presently. What is ICO ? ICO is Initial Coin Offering, a crowdfunding centered around cryptocurrency, which can be a source of capital for startup companies. ICO's profit is very tempting, early investors can gain profit multiple times from their investment.

Investors usually require to do the KYC process before invest their money on ICO. KYC is Know Your Costumer, a process when investor or ICO participant submit and send their identity information.

While the KYC examination is legally increasingly important, there are many ICO providers who choose the least resistant path (and do not collect any KYC information at all). So one of ICO Pass's ultimate goals is to enable KYC verification as easy as possible for ICO providers.

In addition, KYC verification does not guarantee that ICO providers may contact their contributors. If a bank, or regulatory body requests more information about a particular contributor, ICO Pass aims to have a way to allow ICO providers to connect with such contributors.

Even with KYC contact information and information available, there is a tooling problem. There is no KYC management system that can interact with blocked data. In addition, different ICOs use different smart contracts to manage the crowds. Often crowdtale contracts are audited, and may not be easy to change.

Problem

The average amount the company generates per ICO is 2.4m EUR (2.9 million USD), so this is a large amount of money being frozen. Typical tools for performing KYC checks are too expensive - ranging from 230 EUR (280 USD) per identification - or too unpleasant, each country has different laws, identifiable people data is spread across multiple databases and access to such databases is difficult .

The ICO Pass team proposes an automated and accurate tool for KYC inspection. In just a few minutes, ICO providers receive identity checks that are in line with AML (Anti Money Laundering) and may specify that the user is not from an ICO- restricted country

The KYC tool price is set at 6.99 EUR (8.52 USD) per identification. According to the calculations of the ICO Pass team, the KYC solution will generate revenues of 48 million EUR (58 million USD) per year. The projection details are in the Business Opportunities section.

ICO Pass consists of three parts

- a secure and convenient application to perform KYC checks, pay for the service, connect identity to ethereum wallet and re-use identity verification

verified identities such as document ID checking, e-mail verification and list sanctions, PEP, country checks, etc. (initially going to use a third service provider like Onfido but later will add more providers for higher accuracy);

- automatic risk profile and escalation (to be added at a later stage).

ICO Pass will aim to open information about what database is checked, what is the probability of a successful check and how much it costs if you add / delete some of them. This will be achieved through negotiations with services that provide verification of identity documents and screening of watch lists, or by integrating directly with those databases. The ICO Pass addition will integrate with the bank to determine whether the person meets the accredited investor's status.

Full checks will consist of: e-mail verification, phone number verification (optional), address verification (optional), ID document verification, facial scan of direct photo (optional), PEP, check list of sanctions, UBO (Ultimate Beneficial Owner) and permission to represent the organization (to be added later), adverse media checks (optionally), determine the status of an accredited investor (to be added later).